NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Working Papers by Alan Deardorff

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Working Papers

May 2003The Effects of Multinational Production on Wages and Working Conditions in Developing Countries
with Drusilla K. Brown, Robert M. Stern: w9669
This paper assesses the evidence regarding the effects of multinational production on wages and working conditions in developing countries. It is motivated by recent controversies concerning whether multinational firms in developing countries exploit workers by paying low wages and subjecting them to substandard conditions. We first address efforts of activist groups, universities, and colleges in the Anti-Sweatshop' Campaign in the United States, the social accountability of multinational firms, and the role of such international institutions as the International Labor Organization and World Trade Organization in dealing with labor standards and trade. We then consider conceptually how foreign direct investment might affect host-country wages. Available theories yield ambiguous predi...

Published: The Effects of Multinational Production on Wages and Working Conditions in Developing Countries, Drusilla K. Brown, Alan Deardorff, Robert Stern. in Challenges to Globalization: Analyzing the Economics, Baldwin and Winters. 2004

December 1995Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?
w5377
This paper derives bilateral trade from two cases of the Heckscher-Ohlin Model, both also representing a variety of other models as well. First is frictionless trade, in which the absence of all impediments to trade in homogeneous products causes producers and consumers to be indifferent among trading partners. Resolving this indifference randomly, expected trade flows correspond exactly to the simple frictionless gravity equation if preferences are identical and homothetic, or if demands are uncorrelated with supplies, and they depart from the gravity equation systematically when there are such correlations. In the second case, countries produce distinct goods, as in the H-O Model with complete specialization or a variety of other models, and preferences are either Cobb-Douglas or CES....

Published: Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?, Alan Deardorff. in The Regionalization of the World Economy, Frankel. 1998

Contact and additional information for this authorAll NBER papers and publicationsNBER Working Papers onlyInformation about this author at RePEc

 
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